Indian stock markets opened lower on Thursday as escalating tensions in West Asia and a sharp rise in crude oil prices weighed on investor sentiment.
The benchmark indices came under pressure following reports that Iran’s Navy Chief warned vessels sailing through the Strait of Hormuz may require Iran’s approval or face potential targeting. The remarks raised concerns about possible disruptions to global oil supply.
At the opening bell, the Nifty 50 index declined 192 points or 0.80 per cent to 23,674.85, while the BSE Sensex fell 494.06 points or 0.64 per cent to 76,369.65.
Market experts attributed the early losses to a combination of global risk aversion, rising crude prices and continued foreign institutional investor (FII) outflows.
Banking and market expert Ajay Bagga said India has increasingly become a “sell-on-rally” market for foreign investors amid global uncertainty.
“For FIIs, India has turned into a sell-on-rally market. Elevated crude, a strong dollar and trade war risks are pulling capital away, leaving every bounce vulnerable to global risk-off flows,” Bagga told ANI.
He added that the global energy market is witnessing heightened volatility due to geopolitical tensions. According to him, markets remain concerned that emergency oil reserves cannot offset disruptions if key shipping routes are affected.
Meanwhile, WTI crude oil prices surged past $100 per barrel, raising concerns about inflation and the broader impact on global economic stability.
Sectoral indices on the National Stock Exchange also traded lower in early trade. Nifty Auto, PSU Bank and Realty sectors registered the sharpest losses, each declining by more than 2 per cent.
Other sectors also slipped, with Nifty FMCG down 1.4 per cent, Nifty IT falling 0.43 per cent, and Nifty Pharma declining 0.98 per cent.
In commodity markets, precious metals remained elevated amid global uncertainty. Gold was trading around ₹1,61,629 per 10 grams (24 karat), while silver was at ₹2,67,121 per kilogram.
Asian markets also witnessed selling pressure. Japan’s Nikkei 225 fell about 2 per cent, while Singapore’s Straits Times, Hong Kong’s Hang Seng, South Korea’s KOSPI, and Taiwan’s Weighted Index also traded lower.
In the United States, markets ended mixed on Wednesday. The S&P 500 slipped 0.08 per cent, the Nasdaq edged 0.08 per cent higher, and the Dow Jones Industrial Average declined 0.61 per cent.
-ANI
